First set of clubs accounts pile pressure on Liverpool’s warring owners

[Bender]

http://www.timesonline.co.uk/tol/spo...cle4092788.ece


More than 300 Liverpool fans spent yesterday posting eviction notices at Anfield, demanding repossession of the club, and the pressure on Tom Hicks and George Gillett Jr, the warring American owners, will increase with the publication of their first set of accounts.

Kop Football (Holdings) Ltd, one of the club’s parent companies, made a £33 million loss in the year ending July 31, 2007, according to accounts submitted to Companies House last week. The club’s £350 million loans will also have to be refinanced as early as January and the club must pay interest on a £64 million loan from Kop Football Ltd, its immediate parent company.

The accounts reveal that the owners wrote off £10.3 million when they scrapped the club’s design for a new stadium after their takeover in February 2007 and Liverpool fans will be irked to learn that the co-owners claimed more than £1.4 million in expenses in the seven-month period concerned.

[Danish_Pastry]

WOW - worth than anybody had predicted!!

I bet I could find a nice way to spend £1.4mio in 7 month - thats abt. 80 times my wages for that period - and just to run one among several sportscompanies.

[Vermilion]

http://www.timesonline.co.uk/tol/spo...cle4092788.ece


More than 300 Liverpool fans spent yesterday posting eviction notices at Anfield, demanding repossession of the club, and the pressure on Tom Hicks and George Gillett Jr, the warring American owners, will increase with the publication of their first set of accounts.

Kop Football (Holdings) Ltd, one of the club’s parent companies, made a £33 million loss in the year ending July 31, 2007, according to accounts submitted to Companies House last week. The club’s £350 million loans will also have to be refinanced as early as January and the club must pay interest on a £64 million loan from Kop Football Ltd, its immediate parent company.

The accounts reveal that the owners wrote off £10.3 million when they scrapped the club’s design for a new stadium after their takeover in February 2007 and Liverpool fans will be irked to learn that the co-owners claimed more than £1.4 million in expenses in the seven-month period concerned.

Shocking. No wonder Rafa's transfer kitty isn't as we or he would like it to be. And this is before they get more loans for the stadium.

[Tee]

This gets from bad to worse... how and when is this mess going to be sorted out?

[Darkon]

that is really bad news, only positive is that it might force the yanks to get rid more quickly!

[anfieldanfield]

Mess.

[Darth Marty]

messi? I doubt that mate, did you see the accounts?

[kingfunk]

messi? I doubt that mate, did you see the accounts?

[anfieldanfield]

messi? I doubt that mate, did you see the accounts?

Too easy.

[Darth Marty]

ha ha couldnt resist............

[Johnny]

I wonder what Manu`s books look like right now????

Isn`t debt now supposed to be paid when the New 70,000 stadium is built?It`s not a one yr plan.

[MascheredUp]

Tim on RAWK saying those expenses were for their jetting to and from the US and back and other expenses during the takeover/negotiations.

Interesting thread from him on our finances last year here:

http://www.redandwhitekop.com/forum/index.php?topic=220943.0

[Vermilion]

The Echo

http://www.liverpoolecho.co.uk/liverpool-fc/liverpool-fc-news/2008/06/09/us-owners-1-2m-claims-from-liverpool-fc-accounts-100252-21045499/

US owners' £1.2m claims from Liverpool FC accounts

Jun 9 2008 By David Prentice
George Gillett and Tom Hicks

LIVERPOOL’S American owners Tom Hicks and George Gillett have incurred £1.2m in personal claims in their first seven months of ownership at Anfield.

The Kop Holdings Ltd figures, which also show a £33m loss on the year ending July 31, 2007, include transaction, travel and personal claims.

The accounts, the first set released by Kop Holdings, show that from December 2006 to July 31 2007, £823,000 was incurred by George Gillett for “transaction related expenses” – understood to be claims built up during the acquisition of the club – and a further £375,000 for “reimbursable travel, legal, personnel and other expenses.”

As at July 31, 2007 £100,000 of these amounts were listed as unpaid.

During the same period the company incurred £133,000 for transaction related expenses on Tom Hicks’s behalf and £198,000 for reimbursable travel, legal and other expenses.

£244,000 of these amounts were listed as unpaid at July 31, 2007.

The accounts also show that during the January refinancing of the club, an inter-company loan of £64m was made, seemingly to service the interest repayments incurred.

The ownership of the club is a complicated structure split into five elements – with Kop Investment LLC being the parent company supporting four subsidiaries, ending with Liverpool Football Club.

Kop Holdings, the company two levels above LFC, lent the club £64m over three years for the apparent purpose of servicing the interest repayments of the refinance, believed to be around £30m each year.

The outlook for the financial future at Anfield is not likely to improve, piling even more pressure on Hicks and Gillett.

The club’s £350m loans may also have to be refinanced as early as January, meaning another intensive search for backers by Hicks and Gillett may need to begin again almost as soon as the season kicks off.

With no sign of the worldwide credit crunch easing, this could be a difficult quest for the club.

The accounts also reveal that the owners wrote off £10.3m when they scrapped the club’s design for a new stadium after their takeover in February 200, and the likelihood of work beginning any time soon on the new stadium is remote.

Hicks and Gillett remain at loggerheads with each other, further complicating the picture and leaving Anfield’s financial future clouded with uncertainty.

Fans’ anger at costs

JAY McKenna, spokesman for LFC supporters’ union group Spirit of Shankly, said: “It’s an absolute disgrace.

“They’re not just wasting the club’s time in delaying the potential sale of the club, but now it appears they’re wasting the club’s money as well.”

LFC fan and musician Peter Hooton said: “This proves the point again how the Americans have been unwilling to spend a dime of their own money since they arrived.

“Private jets and top hotels must be expensive.”

[Pablo]

Another appalling revelation

Interesting how Gillete's claim is over £1m while Hicks is a mere £300k.

[bobbyfallon]

hicks flew with ryanair